India’s OVL-Hinduja to Invest $20 bln in Iran Exploration Assets

TEHRAN (FNA) ONGC shares gained momentum Friday on the company’s overseas arm ONGC Videsh and the UK-based Hinduja group is planning to invest close to $20 billion in exploration assets in Iran and a refinery and LNG terminal in India.

At 11:48 am, the share was up 3.41 per cent at Rs 1,350.40 with volume traded at 1,48,545 against two-week average of 447519 shares.

Hindujas, together with state-run ONGC’s overseas arm ONGC Videsh Ltd, will court Iranian firms to invest eight billion dollars in developing the 40 billion barrels Azadegan oilfield and Phase-12 of the giant South Pars gas field.

According to reports, Switzerland-registered Naftiran Intertrade Co, a unit of National Iranian Oil Co, has been offered a stake in the 15 million tons oil refinery, one million tons petrochemical plant and 7.5 million tons LNG receipt facility planned by Hinduja-ONGC at an investment of over $10 billion at either Kakinada in Andhra Pradesh or Mangalore in Karnataka.

The Indian consortium of Hinduja Group and OVL will get 60 per cent stake in development of South Pars Phase-12 and just over 50 per cent in Azadegan field, they said, adding a contract for the same will be signed within two months.

Azadegan field will produce 150,000 barrels per day of oil in first phase that would double subsequently, while South Pars Phase-12 will produce 12 million tons of gas that will be converted into LNG at a two-billion dollar facility.

Hinduja-ONGC have sought supply commitment for the entire oil produced from Azadegan field and 7.5 million tons of LNG from South Pars Phase-12.

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